Mish's Global Economic Trend Analysis Message Board

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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: skinowski who wrote (109188)	3/1/2010 3:40:31 PM
From: Hawkmoon	Read Replies (1) of 116555

I'll probably get into trouble from any and all resident economists on this thread.... :) Don't worry.. They don't call Economics the "Dismal Science" for nothing... ;0) en.wikipedia.org To a large degree the banking industry is turning into a carry trade. Pretty much.. Churning T-Bills and making big bonuses. Maybe a bit somplistic, but that's how I'm perceiving it currently. Again.. the gov't borrowed a ton of money in order to give "scared money" a place to be parked so interest yields weren't driven to zero. And acting as the borrower of last resort, the Treasury and administration has an obligation to insure that borrowed money is properly spent in productivity enhancing projects. If anything, it could be used to mitigate labor costs for small business via tax credits, but I believe this is a "bandaid" effort. The only way to properly grow out of the debt burden we have is to create new wealth from productive enterprise from which to derive additional tax revenues to service/terminate that debt. Hawk

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